Leases

12 Months Ended

Apr. 30, 2020

We enter into lease arrangements, which we use primarily for office space, vehicles, and land. Substantially all of our leases are operating leases. Our finance leases are not material.

Effective May 1, 2019, we updated our accounting policy for leases to reflect the adoption of ASC 842. Under ASC 842, we record lease liabilities and right-of-use (ROU) assets on our balance sheet for leases with terms exceeding 12 months. We do not record lease liabilities or ROU assets for short-term leases.

The amounts recorded for lease liabilities and ROU assets are based on the estimated present value, as of the lease commencement date, of the future payments to be made over the lease term. We calculate the present value using our incremental borrowing rate that corresponds to the term of the lease. We include the effect of an option to renew or terminate a lease in the lease term when it is reasonably certain that we will exercise the option.

Some of our leases contain non-lease components (e.g., maintenance or other services) in addition to lease components. We have elected the practical expedient not to separate the non-lease components from the lease components.

The following table shows the amounts and classification of ROU assets and lease liabilities on our balance sheet as of April 30, 2020:



	Classification	April 30, 2020
Right-of-use assets	Other assets	$	51

Lease liabilities:
Current	Accounts payable and accrued expenses	$	16
Non-current	Other liabilities	37
Total		$	53

The following table shows information about the effects of leases during 2020:



	2020
Total lease cost¹	$	29
Cash paid for amounts included in the measurement of lease liabilities²	21
Right-of-use assets obtained in exchange for new lease liabilities	35

¹Consists primarily of operating lease cost. Other components of lease cost were not material.

²Classified within operating activities in the accompanying consolidated statement of cash flows.

The following table includes a maturity analysis of future (undiscounted) operating lease payments and a reconciliation of those payments to the lease liabilities recorded on our balance sheet as of April 30, 2020:



	April 30, 2020
2021	$	17
2022	13
2023	9
2024	6
2025	3
Thereafter	9
Total lease payments	57
Less: Present value discount	(4		)
Lease liabilities	$	53

Weighted-average discount rate	3.0%
Weighted-average remaining term	5.2 years

Future operating lease payments, under the prior accounting standard (ASC 840), were as follows as of April 30, 2019:



	April 30, 2019
2020	$	23
2021	16
2022	10
2023	5
2024	3
Thereafter	2
Total lease payments	$	59

Rent expense for operating leases (under ASC 840) was $26 in 2018 and $28 in 2019.